Startup automaker Rivian narrowed its losses and reported an uptick in electric-vehicle sales and revenue in the second quarter, a rare bit of good news for the troubled EV space in the U.S.
Rivian said it now hopes to sell more EVs this year than previously expected, a likely sign of early momentum for its newest model, the R2 SUV.
Rivian delivered 12,194 EVs, up from 10,365 in the first quarter. While the automaker doesn't officially break out exact sales numbers by individual model in its financial reports, many fans of the brand and enthusiasts had been waiting for the R2's debut in June.
The R2 is currently priced around $58,000, undercutting previous Rivian models that could easily cross the six-figure mark. Lower-price R2 variants are also coming later this year and next year. Rivian executives have expressed hope that the more affordable electric SUV can make the brand a mainstream success.
"I believe R2 will be a game changer for our customers and a driver of Rivian's long-term growth and profitability," Chief Executive RJ Scaringe said in a statement. "The U.S. automotive marketplace is starved for high-quality EV choice, and I believe R2 is an attractively priced option for everyday adventures that will resonate with a broad set of consumers."
The California-based company posted a net loss of $837 million, narrowing from a year-earlier loss of $1.15 billion. Revenue for the quarter was up 27% at $1.66 billion, including a 37% increase in software revenue to $515 million.
Rivian also raised its guidance for the year, projecting adjusted losses as high as $2 billion; previously, the company had estimated losses of up to $2.1 billion. Moreover, it now expects to sell 65,000 to 70,000 EVs this year, higher than it estimated in the previous quarter. Projected capital expenditures have also declined.
The EV segment in the U.S. -- the only market besides Canada where Rivian sells cars -- has declined significantly since the Trump administration ended purchasing incentives last year. Sales of all-electric models were down nearly 30% year-over-year in June, according to data from Motor Intelligence.